Quantifying the Value of Integration With PeopleSoft Maintenance Management: A Real Life Example

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Quantifying the Value of Integration With PeopleSoft Maintenance Management: A Real Life Example

August 19, 2009
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In some of my previous blog posts, I have emphasized the importance and real-world value of integration for PeopleSoft customers. Integration is an overused word, but nonetheless lots of concepts and power live within it.

There is no question that an integrated maintenance management system lowers an organization’s risk and costs. What I haven’t really done previously is quantify the value of integration — in other words, put a number on how much money a PeopleSoft customer will really save by using the PeopleSoft Maintenance Management solution instead of a third-party product that must be interfaced and supported.

Here’s my shot at that.

A large city in the Western US that uses PeopleSoft recently posted a bid award for a consulting and support agreement on their website. This particular city uses a third-party maintenance management system.

When I read the bid details, I was surprised to read that this city was spending $300,000 to integrate their third-party maintenance management system to their PeopleSoft procurement system. Three hundred grand, just for integration work. The bid details also mention an additional (but unspecified) amount would be used to pay for ongoing software maintenance and services to support the integration.

If I estimate those costs at 10% of the original integration cost annually, the five-year costs to develop and support the integration between PeopleSoft and third-party maintenance solution is right around $450,000.

I don’t know about you, but when you consider that the cost of integration is for PeopleSoft Maintenance Management customers is zero and there is no additional support and maintenance costs beyond the standard Premium support, I can think of 450,000 reasons why a PeopleSoft customer requiring a maintenance management solution should be looking closely at the PeopleSoft Maintenance Management solution.

That’s one example. I’m sure there are many more.

If companies understood that the PeopleSoft Maintenance Management solution offered functional parity or superiority and massive downstream cost savings when it comes to native integrations into other PeopleSoft FMS modules, people would see this decision (and investigation) differently. In my discussions with clients, when this topic comes up they are shocked at what they learn. Not just about what PeopleSoft Maintenance Management can do, but also how much extraneous dev + maintenance spend they can jettison by sticking with native intra-PeopleSoft integrations.

If any of this sounds like something you’re wrestling with, please email me or give us a call at 800-774-5187. I’d love to help you sort your plans out.

In addition, you can check out Oracle’s website and download some of the collateral related to the product. If you’d like more of an in-depth primer on PeopleSoft MM’s and a deeper explanation of its benefits (especially compared to point solutions), download our free whitepaper entitled PeopleSoft Maintenance Management: An Introduction and Overview of Benefits.

Previously:

Quick Look: PeopleSoft Asset Lifecycle Management (ALM) 9.1 Enhancements
PeopleSoft ‘Edge of the Enterprise’ Applications: eSupplier Connection & eSettlements
PeopleSoft Financials: Source-to-Settle 9.1 Enhancements
PeopleSoft IT Asset Management: A Deeper Look
PeopleSoft Maintenance Management: A Deeper Look
PeopleSoft Real Estate Management: A Deeper Look
An Introduction to PeopleSoft Asset Lifecycle Management
Sneak Peek: PeopleSoft Enterprise Portal 9.1
PeopleTools 8.5: A Look Inside